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Stocks Grind Higher As Focus Turns From Capitol Chaos To Coming Stimulus

Bonds erased early losses and stocks give back opening gains, drifting back within Wednesday’s trading range as traders paused to asses the rollercoaster of the past three days which saw the biggest first day drop of the year since the dot com bubble followed by a surge as Democrats took Congress following Senate wins in Georgia, sparking expectations of massive stimulus.

S&P 500 futures were up 0.4% and most stock benchmarks across Asia and Europe were in the green. Treasury yields held above 1%, while the dollar strengthened against all its major peers. Ahead of the coming stimulus tsunami, Bitcoin shot above $38,000 to another record high.

At 07:40 a.m., Dow E-minis were up 91 points, or 0.31%, S&P 500 E-minis were up 18.5 points, or 0.49%, and Nasdaq 100 E-minis were up 91.5 points, or 0.8%. Among the notable movers, Bank of America Corp, Citigroup, JPMorgan Chase and Goldman continued to climb in pre-market trading as the benchmark 10-year Treasury yield hovered near 1%. Shares of Twitter Inc. dropped 1.3% in U.S. pre-market trading after the platform suspended Trump’s account. Tesla Inc. added 2.9% as analysts at RBC upgraded the stock, saying they were “completely wrong” with their previously bearish views.

Overnight, Joe Biden was formally recognized by Congress as the next U.S. president early Thursday, a day after demonstrators overpowered police and stormed through the Capitol building in a scene of unprecedented turmoil in Washington. Present Donald Trump released a statement pledging “an orderly transition” after Congress certified the results. Stunning images of the assault on Congress had earlier knocked sentiment, though markets focused on the implications of the Democrat blue wave.

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